purse strings and battling to stave off job cuts.

And they hope Finance Minister the Hon. David Saul will still have the Christmas spirit in February when he unwraps his Budget.

All are prepared for a tough Budget as the Country tries to muscle its way out of recession.

Dr. Saul has signalled a possible turnaround by spring or summer next year.

Some departments are already preparing to trim costs by not refilling vacancies.

Up to 20 teaching posts are expected to be wiped out following a cost-cutting order from the Finance Ministry.

And Marine and Ports plan to reduce their ferry service, and mothball the cruise ship tender Canima .

The crew of five would be reassigned, and the boat put into dry dock, although still available for duty.

Recently, Government Senate leader the Hon. Michael Winfield hit out at Opposition demands that there should be no redundancies from tender cuts.

"Cuts are made throughout Government. Reductions wherever possible are being made by Government because of the recessionary time and the reduced levels of finance coming in,'' he told the Senate last week.

"Government is responding to the financial circumstances that exist.'' And, after being challenged by PLP Sen. Ira Philip, he said: "It's wrong for any member of Parliament to suggest that we should not be looking at reducing costs to the taxpayer.

"We have to understand that each of us and every civil servant and the remuneration we receive are paid for by the people of Bermuda through taxes.

"If we can reduce the burden of that tax we should be doing it wherever we can.'' Most departments, however, are confident they can contain costs without lay-offs.

Said Mr. Tony Webb, controller at Works and Engineering: "We are not anticipating redundancies.

"Following the general Government policy, where a position becomes vacant we stringently control replacements.

"There is no absolute moratorium on replacements, and some vacancies do get filled.

"Over the last year the number of staff members has gone down, probably by around 15 or 20.'' Mr. Webb said he expected the scenario to remain until the economy picked up.

Mr. Gary Phillips, director of Tourism, said Government's directive for departments to increase productivity and effectiveness without hiring new people was no secret.

"I don't, however, foresee any reduction in our overseas staff. We have a very good team, who work extremely well in promoting Bermuda.

"Budgets are always tough, but they are only statements of policy. As long as that policy is clearly enunciated I don't live in fear of it.'' Mr. John Barnes, director of Agriculture and Fisheries, said he was hopeful his department could "maintain the status quo'' next year. But he could not rule out redundancies.

"I don't know what the Budget is going to be in its finality until it goes to the House of Assembly.

"It could be a tough Budget, but some departments are more essential than others, such as Health and Education.'' Mr. Barnes said he did not consider his department "frivolous'' -- and was hopeful of avoiding swingeing cash constraints.

"We are hoping Santa, in the form of Dr. Saul, will be good to us.'' Mr. Barnes said the policy was to cut jobs through attrition.

"Some people need to be replaced, however. I don't know whether the overall number of staff has contracted over the last year.

"Essentially we are just holding our breath right now over the Budget. That's all we can do.

"Times are a bit lean, and it's a matter of setting priorities. I can't rule out redundancies.'' Mr. Donald Dane, director of Transport Control, said he did not foresee redundancies.

In fact, the department intended advertising two posts in the New Year.

Mrs. Brenda Dale, acting director of Youth, Sport and Recreation, said every area of her department was having to cope with Budget cuts.

"We have made numerous adjustments in our current operations. Sporting groups have been asked to accept cuts in their grants.

"We have had to curtail some of our activities, to make do with less, and stretch ourselves a bit more.

"Every area has suffered a reduction, but we have avoided redundancies or lay-offs.'' Mrs. Dale said the department was trying to replace the Camping Coordinator, who left in September.

The need for the position was being looked at by the Cabinet Review Committee, she added.

Mr. Ron Ross, director of Marine and Ports, confirmed the proposed ferry service reductions.

"No redundancies are anticipated, but we do have to redeploy staff and reduce overtime costs.

"There is less money with which to operate. We do our best to maintain services to the public.'' Health and Social Services Minister the Hon. Quinton Edness said he did not expect lay-offs in his department.

Senior education officer Mr. Robert Horton confirmed between 15 and 20 Government teaching posts were likely to be cut.

But this would be done by not replacing those who retired, or not renewing contracts of overseas teachers.